AeroVironment acquires California aerospace firm for $200M

Arlington County-based defense contractor AeroVironment announced Tuesday that it has acquired California engineering design and manufacturing company Empirical Systems Aerospace (ESAero) for $200 million.

Through the acquisition, AeroVironment will gain about 300 employees. Founded in 2003, ESAero specializes in the production of unmanned aircraft systems and advanced air mobility platforms. The company operates out of a 32,000-square-foot design and prototyping facility and a 53,000-square-foot manufacturing facility in San Luis Obispo, with multiple integration and test facilities in the area.

AeroVironment will keep these facilities operational, stating that they were one of the main factors driving the acquisition, as they will allow for expanded manufacturing capabilities.

“ESAero brings an impressive agility in moving from design to manufacturing, which will accelerate AV’s ability to bridge the gap between conceptual design and manufacturing execution,” AeroVironment President and CEO Wahid Nawabi said in a statement. “ESAero’s capabilities are vital to addressing the urgent demands of a fast-growing defense tech market, where emerging needs are driving next-generation innovation and product development. We look forward to welcoming the team to the AV family.”

AeroVironment said that ESAero possesses deep engineering expertise, “innovative” electric and hybrid propulsion capabilities and rapid aerospace prototyping and that these assets will better help the company serve the requirements of the U.S. Department of Defense.

“Joining AV represents a unique opportunity to amplify the reach and impact of our innovative work and achieve greater success,” ESAero President and CEO Andrew Gibson said in a statement. “By combining ESAero’s engineering and manufacturing capabilities with AV’s unmatched expertise in autonomous systems, we are positioned to advance disruptive aerospace technologies and deliver real, timely value for our customers.”

The announcement noted that $160 million of the $200 million acquisition will be paid in stock and the remainder in cash, subject to post-closing adjustments and holdbacks. ESAero will operate as a subsidiary of AeroVironment and report to the company’s Precision Strike and Defense Systems group under the Loitering Munition Systems business unit. ESAero leadership and employees will remain in place.

The purchase of ESAero is AeroVironment’s second acquisition in less than a year. In May 2025, AeroVironment acquired BlueHalo for $4.1 billion.

Headquartered in Arlington, AeroVironment specializes in intelligent multi-domain robotic systems, uncrewed aircraft and ground systems, sensors, software analytics and connectivity. The company reported $820.6 million in fiscal 2025 revenue, up 14% from the previous year. It has about 4,000 employees.